RIL Open to Expanding Jamnagar Capacity
RELIANCE GROUP FLAGSHIP CAN RAISE REFINING CAPACITY TO 100 MT A YEAR BY 2030 AT AN ESTIMATED COST OF $10 BILLION
Reliance Industries Ltd (RIL) is keeping its options open to significantly expand its giant Jamnagar refinery in the long run, depending on fuel demand but it has not taken any investment decision for such a project, according to industry sources and agency reports.
Jamnagar already has the capacity to process 60 million tonne of crude oil a year, making it the biggest refining complex in the world.the company can expand this capacity to 100 million tonne a year by 2030 at an estimated cost of $10 billion.
Reliance Industries Ltd mentioned the possible expansion in a presentation on energy scenarios up to 2030 made to India's Centre for High Technology (CHT). CHT is a body under the oil ministry and works in the field of oil refining, handling storage. It is also involved in the performance review of refineries.
The Reliance Industries Ltd spokesman was not available for comment but industry sources said that there was no concrete proposal or any investment decision taken to expand the Jamnagar refining complex.
“The plan to is to have a petrol and diesel output capacity of close to 60 million tonne by 2030, produced from cheaper heavy grades,“said an informed person. The Jamnagar refinery's sophisticated technology allows it to process low grades of crude oil, which are cheaper, to produce more high-value refined products. This enables Reliance Industries Ltd to report much higher refining margins than its international peers.
India is already an exporter of refined products because of its huge refining capacity. State-run companies are planning to build a new refinery with a capacity of 60 million tonne ayear, which would create a huge exportable surplus at a time when the biggest oil consumers are planning a big shift to electric vehicles.
India also plans to make its electric vehicles the main mode of transportation by 2030. State-run EESL has already invited bids for electric cars, which would be used by government departments and state-run companies.
Government officials say that if oil demand stagnates or contracts with the advent of e-vehicles, many refineries would be able to start producing petrochemicals instead of transport fuels.